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EU-INDIA SUMMIT 2017: LESSONS

FOR PAKISTAN

By Shahroo Malik

Research Associate

Edited by

Najam Rafique

November 02, 2017

(Views expressed in the brief are those of the author, and do

not represent those of ISSI)

On October 6, 2017, India hosted the 14th EU-India Summit in New Delhi to mark

the 55th anniversary of EU-India diplomatic relations. The summit was attended by

European Commission President Jean-Claude Juncker, Indian Prime Minister

Narendra Modi and European Council President Donald Tusk. The EU and India

came together to discuss trade, migration, security and foreign policy, and adopted

joint declarations on countering terrorism, climate and energy, and partnership for

smart and sustainable urbanization.1

While addressing the press conference of the EU-India Summit, President Donald Tusk stated, "I am

happy that today we have agreed to further develop the political dimension of our relationship; that

we have agreed to develop our dynamic trade and investment relations; and that we have agreed to

step up cooperation on global and regional issues."2

In its desire of becoming a regional hegemon and counter the growing dominance of China in the

region, India is desperately trying to improve its relations with other regional powers and

organizations. By issuing a joint statement on co-operation in combating terrorism with the EU, India

again indirectly tried to put international pressure on Pakistan in which they insisted that

responsible states should ensure that their territory is not used for terrorist activities. Leaders from

1 European Union, "14th EU-India Summit: Why the EU-India strategic partnership matters," European

Union External Action, October 6, 2017, https://eeas.europa.eu/headquarters/headquarters-homepage/33482/14th-eu-india-summit-why-eu-india-strategic-partnership-matters_en.

2 European Commission, "President Juncker at the EU-India Summit," European Commision – News, October

6, 2017, https://ec.europa.eu/commission/news/president-juncker-eu-india-summit-2017-oct-06_en.

ISSUE BRIEF INSTITUTE OF STRATEGIC STUDIES ISLAMABAD

Web: www.issi.org.pk

Phone: +92-920-4423, 24

Fax: +92-920-4658

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IB EU-India Summit 2017: Lessons for Pakistan November 02, 2017

both sides agreed to strengthen security cooperation and take concerted actions against globally

banned organizations and terrorists, including Dawood Ibrahim, Zaki-ur-Rehman Lakhvi, Hafeez

Saeed, Lashkar-e-Tayibba, Jaish-e-Mohammad, Haqqani Network, Hizb-ul-Mujahideen, ISIS (Da’esh),

Al Qaeda and their affiliates.3 Furthermore, EU leaders also appreciated India’s role in Afghanistan

for “extending development assistance including for building social and economic infrastructure,

governance institutions and human resource development and capacity building”.4 This is not in the

interest of Pakistan as it has clearly stated on numerous occasions that it does not want India to

have any role in Afghanistan.

Adding on, the leaders expressed their commitment to further strengthen economic partnership and

make joint efforts towards re-launching negotiations for a Free Trade Agreement and enhancing free

and fair trade for achieving sustainable development and economic growth.5 The recent launch of

the Investment Facilitation Mechanism for EU investments in India was welcomed by the summit

leaders as it will encourage and facilitate EU investments by providing procedural guidance and

support to EU companies intending to invest in India.6

The summit set out the agenda of enhanced cooperation between EU and India in urban

development for the future. The leaders shared their desire of promoting sustainable urbanization in

India by developing a program similar to Urban Agenda for the EU and further enhancing India’s 100

Smart Cities Mission program.7 The aim is to encourage regular dialogue between EU member states

and Indian states on issues such as energy, infrastructure, water and sanitation. This is a good

initiative at a time when it is expected that by the next 10 years, 60% of the world’s population will

be living in cities and by the year 2050, the number of people living in Indian cities will rise to 843

million.8 Hence, there is a need to provide resilient and sustainable development in an inclusive

manner to ensure that the most vulnerable groups such as women and poor are able to live a

healthy life and fulfill their potential in equality and dignity. This initiative will therefore help in

stimulating employment and innovation to ensure sustainable and inclusive development.

3 European Union, "India-EU joint statement on Cooperation in combating terrorism," European Union

External Action, October 06, 2017, https://eeas.europa.eu/headquarters/headQuarters-homepage/33478/india-eu-joint-statement-cooperation-combating-terrorism_en.

4 Kanwal Sibal, "The Telegraph India," A natural partnership - More real than rhetorical, October 2017,

https://www.telegraphindia.com/opinion/a-natural-partnership-180925. 5 European Commission, "President Juncker at the," European Commision – News, October 6, 2017,

6 Ibid.

7 Ibid.

8 European Union, "EU-India Joint Declaration on Climate and Energy," October 6, 2017,

http://ec.europa.eu/regional_policy/sources/cooperate/international/pdf/joint_declaration_india.pdf.

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IB EU-India Summit 2017: Lessons for Pakistan November 02, 2017

The leaders from both sides demonstrated their shared determination and responsibility in making

efforts to mitigate and adapt to the effects of climate change and agreed to cooperate in the

implementation of solar pumping, renewable, green cooling and other climate action commitments

under the Paris Agreement.9 In order to encourage collaborative research and development,

arrangements for exchange of researchers and scientists were also worked out during the summit.10

After the summit Jean-Claude Juncker said, "We agreed that we should take our trading relationship

to the next level. It is high time for a Free Trade Agreement between India and the EU… Today's

Summit is an important step in the right direction and after hearing Prime Minister Modi, I am

confident we can move forward."11

EU is India’s largest trading partner, accounting for more than 100 billion euros in trade and

investments of $83 billion over the time period of 2000-2017.12 About 6000 European companies are

operating in India and 50,000 Indian students are studying in EU universities.13 This summit provided

a great opportunity to India for further enhancing its relations with EU member states in fields which

have high potential of successful cooperation such as sustainable urban development, climate

change and security. It also indicates a shift in EU-India relations from trade to strategic issues.

These new developments are also quite significant for Pakistan and can help in setting the course

of future EU-Pakistan relations. Pakistan needs to strengthen its ties with the EU and expand

cooperation not just in terms of trade, but also on security issues. Pakistan has not been able to

effectively reach out to the EU members states in the past due to its over reliance on the US as a

political ally. Pakistan needs to put forward its concerns regarding India’s enhanced role in

Afghanistan and sponsoring insurgent movements in Baluchistan province in front of the EU. This

will help in providing a counter narrative to India’s policy of maligning Pakistan’s image

internationally. Pakistan has also underutilized the GSP plus status it was awarded in 2014 which

gave tariff free access to certain Pakistani goods. Although Pakistan’s exports to EU have increased

by 38% since 2014,14 but the full trade potential that the European markets can offer has not been

achieved yet. Furthermore, the EU authorities are worried about the recent increase in human

rights violations and have strongly opposed death penalty in Pakistan. It should not be ignored that

9 European Commission, "President Juncker at the," European Commision – News, October 6, 2017.

10 Arun. K. Singh, "European Union and India are natural allies," Hindustan Times, October 10, 2017,

http://www.hindustantimes.com/analysis/european-union-and-india-are-natural-allies/story-SiKS0rWQApIy5e0cAhs82N.html.

11 European Commission, "President Juncker at the," European Commision – News, October 6, 2017.

12 Arun. K. Singh, "European Union and India," Hindustan Times, October 10, 2017.

13 Ibid.

14 Shazia Hasan, "Pakistan among 10 countries enjoying EU’s GSP Plus facility, says envoy," Dawn, September

27, 2017, https://www.dawn.com/news/1360246.

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IB EU-India Summit 2017: Lessons for Pakistan November 02, 2017

the current GSP plus status awarded to Pakistan is subject to compliance with 27 core UN

conventions related to human rights, political rights and labor laws. As the GSP plus review is

underway, it is pertinent that the Pakistani government ensures the implementation of 27 UN

conventions. Considering Pakistan’s falling exports and reduced competitiveness in the

international market, Pakistan cannot afford to lose its GSP plus status.